NY lawsuit filed against FanDuel, DraftKings games

Cornelius Murray, an Albany-based attorney, discusses his lawsuit against New York's law allowing daily fantasy sports contests, such as those offered by DraftKings and FanDuel.(Photo: Jon Campbell / Albany Bureau)

The effort is being backed by Stop Predatory Gambling, a national group that opposes the expansion of legalized gambling.

"It's our constitution that's at stake here," said Cornelius Murray, an Albany-based attorney leading the suit. "If the legislature can unilaterally define gambling in a way that contradicts what every normal person understands is the meaning of the term, then we're in serious trouble."

Daily fantasy sports giants like DraftKings and FanDuel offer contests in which users pay a fee to pick a mock lineup of professional athletes, with prizes paid out based on how that lineup performs on a given day or week.

In June, the legislature approved a bill explicitly allowing daily fantasy sports contests, including a provision making clear lawmakers did not consider them to be gambling but rather a game of skill. Gov. Andrew Cuomo signed it in August.

The lawsuit, which was filed in state Supreme Court in Albany, claims the games do amount to gambling and are at odds with the constitution, regardless of what the legislature approved.

New York's constitution prohibits "pool-selling, bookmaking, or any other kind of gambling," aside from a handful of exemptions like the state lottery and betting on horse racing.

In a statement, Marc LaVorgna — a spokesman for DraftKings and FanDuel — said the issue is a "layup," saying the anti-gambling group "has no case."

“The state constitution specifically gives the legislature the power to define what is — and what is not — gambling, and the legislature has done so a number of times in the past and long before the emergence of fantasy sports," LaVorgna said.

As the state's attorney, Schneiderman's office will now be in a position to defend the law, a year after forcing the companies to suspend business in New York.

“We will review the complaint," said Doug Cohen, a spokesman for Schneiderman. "The attorney general has said he will enforce and defend the law.”